Kenyan fintech Fingo has launched its neobank, in collaboration with Ecobank Kenya. The neobank, the first of its kind in Kenya, was unveiled in an event attended by the country's President William Ruto.
The move follows a $4 million seed funding round, led by multistage venture capital firm HOF Capital, and a partnership with Ecobank, and required regulatory approval from the Central Bank of Kenya.
Fingo was founded in January 2021 by CEO Kiiru Muhoya and co-founders James da Costa, Ian Njuguna and Gitari Tirima to provide financial services to a fast-growing African youthful population. The fintech claims to have acquired 10,000 active users, with a waitlist of 100,000 customers within 24 hours of the launch.
The neobank aims to address the challenges faced by young adults in Africa, including expensive fees to send money, maintaining accounts, and difficulties accessing savings, insurance, and credit.
Fingo's Africa app will offer users a bank account within five minutes, free peer-to-peer transactions, and immediate access to services such as savings, financial education, and smart spending analytics.
Fingo's partnership with Ecobank, which claims to have the most significant footprint of any bank in Africa, covering over 30 countries, might provide the scale the fintech needs outside Kenya.
Both entities are planning a Pan-African rollout, with an imminent expansion to the rest of East Africa by the end of the year, according to Muhoya. Digital banking counterparts that serve consumers in that region include Finclusion and Koa.